The Association of British Insurers (ABI) and the car insurance industry
The Association of British Insurers (ABI) is an organisation consisting of all kinds of insurers, from car insurance providers to life insurance companies. The vast majority - 94% - of UK insurance companies belong to the body, although brokers and intermediaries are not eligible for membership. Read more about what a car insurance intermediary is.
The ABI was formed in 1985 out of the merger of several major industry bodies, including the British Insurance Association, the Life Offices' Association, the Accident Offices Association and the Fire Offices Committee. It is based in London and currently has around 100 employees.
The ABI is split into four main areas: General Insurance, which includes home and car insurance; Life and Pensions; Financial Regulation and Taxation; and Investment Affairs. It works to provide a voice for the shared interests of these four departments, which are supported by a fifth department that carries out research to put together revealing and helpful statistics.
Although speaking out about the collective interests of its 400 members is a large part of the ABI's role, it is not its only purpose. It is also extremely active in debating current issues and public policy in order to find the most appropriate solution. An example of this can be found in its November 2006 debate on the answer to the looming pensions crisis, which took views from both the Government and the savings industry, as well as other interested parties.
The third role of the ABI is that of campaigner for high standards of customer service in all parts of the insurance industry. It highlights any issues to bodies such as the Financial Services Authority (FSA) and the Government and is committed to getting them acted upon.
The media is also an important tool in bringing problems to the attention of the public and the ABI regularly speaks out on current affairs that need to be discussed. It collects data to form extremely influential reports and policy papers that can be used in forming powerful arguments for or against change.
As well as writing documents on issues in the life, home and car insurance industries, the ABI also organises conferences and seminars. These promote useful discussion and information sharing amongst major players in order to get policies formed on a wide range of issues currently directly and indirectly affecting the industry.
The 2006 ABI Motor Conference was one such meeting. Its first focus was on how the motor insurance industry can play a part in reducing the number of young drivers being killed on the roads. It revealed the launch of a new coalition that is dedicated to this cause, as well as discussing the efficacy of tactics such as a minimum learning period. Read more about the role of the car insurance industry in improving road safety.
It also saw a speech by the Transport Secretary on how the car insurance industry should be involved in finding a green solution to the problems caused by road networks, as well as a discussion on how car insurance companies can deliver improved compensation and rehabilitation to those who have been involved in road accidents.
The final topic covered by the ABI Motor Conference was that of how changing technology is affecting car insurance customers. The black boxes recently introduced by Norwich Union for pay-as-you-drive car insurance were hailed as the invention that could trigger a wave of radical new types of motor insurance policy. Speakers at the conference discussed how privacy risks can be most effectively managed and how the industry as a whole will react to this kind of car insurance policy. Read more about Norwich Union.
As can be seen from the ABI Motor Conference, the issues tackled by the ABI are wide ranging and can have critical effects on both the economy and society. The Association strives to identify and promote a balance that allows economic growth whilst still maintaining the trust and support of insurance consumers, industry players and the media.
More can be found out about the ABI at http://www.abi.org.uk.
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